Materials Costs Jump Again

October 15, 2012

Price spikes for several key construction materials in September, the second month in a row of increases, threaten to push contractors out of business, according to AGC's analysis of government data.

The recent surge comes despite mild year-over-year changes in materials prices overall.

“The latest surge in materials costs may push subcontractors and some general contractors into insolvency, following years of razor-thin margins and shrunken levels of activity,” said Ken Simonson, chief economist for AGC. “Most contractors have no ability to pass on unexpected cost increases.”

Source: AGC